A FAMOUS factory is to close causing major job losses in a South Cheshire town in the New Year.

The closure of Saxon Specialist Vehicles will have a 'disastrous' knock-on affect for Sandbach, according to the area's MP, Ann Winterton.

Lady Winterton voiced her concern after the shock announcement of 103 job losses at the plant in Moss Lane, Elworth.

Despite her efforts, the company, which has fought mounting debts for five years, will cease trading in March.

Saxon, formerly Saxon Sanbec, was a leading supplier of vehicles to the fire-fighting community for many years, but was badly hit by changes in the way the Fire Service orders fire engines, and poor demand for the company's scissors lifts used by passengers boarding aircraft.

Lengthy talks between the MP and the Office of the Deputy Prime Minister, John Prescott, which controls the Fire Service's orders, proved fruitless.

She said: 'I am extremely concerned about the loss of employment and the loss of a company which is an established part of Sandbach. It is disastrous for those who will lose their jobs, and for the town.

'I have been trying to help this company for some time. I have brought the subject up in Parliament and I have been in talks with ministers in the Office of the Deputy Prime Minister on the subject.

'I had hoped we could save it but, at the end of the day, it has not been profitable over a length of time and there is little I can do about that.'

Managing director Mark Day has written to employers in the area in a desperate bid to find new jobs for Saxon's skilled workforce, which include sought-after auto electricians, vehicle designers and administrative staff.

Mr Day, who was brought in eight months ago in a bid to save the ailing company, is also losing his job.

He said: 'It breaks my heart that Saxon is closing. It is such a lovely place to work and we have extremely loyal employees. Many have been with the business since it started 22 years ago.'

Mr Day blames the closure on 'adverse trading conditions'. He said: 'The company has pursued a number of alternatives, including a management buy-out and the sale of the business as a going concern, but unfortunately these have not proved successful. I wish I had been brought in earlier, but at this late stage there was nothing more I could do.'

Cllr Neville Price, who represents Sandbach at county, borough and town council level, branded the closure 'disgraceful'.

He said: 'These employees have been let down. The company should have changed its structure if it was not coping with the market it was in.

'They say they are trying to find people jobs but that is little use to older employees who have worked at Saxon for 22 years and are not trained to do anything else.'